How to Reduce Auto Insurance Costs

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					     How to Reduce Auto Insurance Costs

Driving a car is one of the most potentially perilous things we can do. One
wrong turn, one moment of hesitation, one second of taking your eyes off the
road, one errant driver and the consequences may be severe and expensive.
That potentially high cost is transferred to automobile insurance premiums.
There are many factors involved in determining auto rates, many of which are
beyond our control. However, there are things you can do to save money on
automobile insurance costs. Keep reading to learn more.


Safe driving


Most insurers offer their lowest rates to drivers with good driving records.
Drivers with impeccable records can save as much as 60% over drivers who
cause accidents.


Money Saving Discounts


Insurance companies often offer a number of special credits to customers
who've done something to reduce their risk of accidents. In some cases,
these credits are a way to reward valuable customers for their loyalty and
continued business.


These credits are described in general terms so check with United Insurance
representative to find out the specific details of credits your auto insurer
offers. Your agent will also be able to tell you which credits are available in
your state, too, because these credits aren't available everywhere.


 •   Anti-lock Brake Credit: Anti-lock brakes are an automatic safety feature
     that reduces your risk and that means you could qualify for a credit on
     your policy.
 •   Anti-theft Credit: These security features could qualify you for credit
     because you've reduced your risk by installing: - alarms and active
    disabling devices (systems that you need to turn on) - a passive disabling
    device (automatically kicks in when you remove the key from the ignition)
    - keyless devices (like a remote door lock on your key chain)
•   Car Pool Credit: Do you commute to work and home in a car pool with
    two or more people? You'll save more than the cost of gas and car
    maintenance. You could qualify for a credit on your auto policy, too!
    That's because you'll use your car less often, especially during the busy,
    stressful morning and evening hours when your chance of an accident is
    greater.
•   Defensive Driver Credit: Drivers at least 55 years old who have
    completed a state-approved defensive driver or accident prevention
    course could qualify for savings. This credit may be good for only a certain
    number of years from the completion date of the course.
•   Driver Training Credit: A driver under the age of 21 who has taken a
    driver training course could qualify for savings. That's because the better
    the driver, the lower the risk.
•   Forgiveness Credit: This credit is usually available to drivers who've
    loyally maintained their auto policy with the same insurance carrier for
    many years. The first minor traffic accident (like a fender bender) that is
    estimated below a certain dollar amount may not be marked against
    them. It won't raise the cost of their insurance either.
•   Good Student Credit: If a driver in your household is younger than 25
    years old and is a full-time student with a B average, they could qualify
    for a credit. This may be because a conscientious student is more than
    likely a conscientious driver!
•   Loss Free Credit: Some insurance companies will give you a credit if you
    haven't made any claims during the first few years that you've had your
    policy. Being a good customer and a low risk applies here!
•   Low Mileage Credit: The amount of miles you travel in a year could
    mean you'll get a credit on your policy, depending on how low that
    mileage figure is. That's because the lower the miles on the road, the
    lower the risk of an accident.
 •   Mature Driver Discount: Some companies offer credits for drivers over
     the age of 55.
 •   Multi-car Credit: Insuring more than one car with your auto insurance
     company may make you eligible for savings.
 •   Multi-Policy Credit: You could save money if you have more than one
     type of policy with the same insurance company (for example, an auto
     policy and a homeowners policy). The more good business you give the
     company, the more valuable you are as a customer.
 •   Passive Restraint Credit: Most insurance companies will give you credit
     if your car has air bags, automatic seat belts, or other safety features that
     you don't have to turn on or buckle up manually. These features
     automatically reduce your risk of injury.
 •   Renewal Credit: Once you've had your auto policy for a certain number
     of years, you'll begin to get a credit each year you renew. (It's the good
     customer thing again.)
 •   Student Away Credit: You could get credit if a driver in your household
     is a student living away at a school. If your student is more than 100
     miles from home and doesn't have a car, that driver's risk is lowered
     because his or her time behind the wheel is reduced.

Deductibles


A common deductible amount (what you pay out of your own pocket before
your insurance policy kicks in) ranges from $200 - $1,000. Choosing a higher
deductible can mean paying less for your policy. Consider the rising costs of
car repairs and what you can afford to pay out of your own pocket.


Safer cars benefit


A car that is practical, safe to drive, and inexpensive to repair (relatively
speaking!) will cost less to insure. High-performance cars (that hot sports car
you've always longed for!), expensive cars that are costly to repair, and cars
that are likely to be stolen will, of course, cost more to insure. Check the
crash-test reports, repair records, and manufacturer recalls of any car you are
 considering. A consumer protection magazine can be very useful. Or, surf the
 many car sites on the net.


 Eliminate unnecessary coverages


 If you drive an older car with little cash value, consider eliminating "collision"
 and "comprehensive" coverage from your policy. If the cost to repair body
 damage to an older car is more than the value of the car itself, the insurance
 company will appraise the car as "totaled" and give you only the amount of
 the car's value. Be sure you're not over-insured!


 Fraud


 Did you know that fraud costs you about ten cents for every dollar you spend
 on insurance? Think about this: if you own a home and two cars and pay
 $1,800 for insurance each year, you'll have spent $900 on fraud in just five
 years. So, ask your state legislators to make the fight against insurance fraud
 one of their priorities. Report insurance fraud to your insurance agent or local
 police when you see or suspect it. Speak out against insurance fraud to your
 friends, family, and business associates. After all, it's not just the big
 insurance companies that pay. All those costs eventually filter down to you.

Ready to reduce your insurance cost? Contact us for a quote or more info at
(513) 489-6422 or cincy@u-insure.com



 Source: Insurance Information Institute; www.iii.org

				
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